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James Millar
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David.M, post: 246213, member: 94914 wrote:
Hi Everyone

I have found many answers in this website and forum which is great help when starting a business.
I have been self employed for couple years now ( mobile mechanic ) and even with a very strong start with my business i am struggling to find a bank that will help me take it to the next step ( looking at borrowing 50K )
First question is always do you own a house, i say no and then the door is shut !
Even showing my business gross profit 110K for the first full financial year, all my equipment and vehicle is paid, still not good enough

Now i am wondering what option i have, there is some financial institution that will lend me that money but only for a 12 month period and that’s too much stress financially

Small business owners, how did you grow your business ?

Lot of people say just save and wait but when the train is going strong and gaining speed, you want to jump on board before you miss it !

Any advice would be greatly appreciated

David

David I’m not sure if you have a good a accountant but they should have foreseen this and recommended that you asset finance the equipment and vehicle and keep the profits for working / expansion capital (rather than paying off the assets and owning them debt free as you have done). The reason is that its a lot easier to get asset finance than it is to get a general floating business loan or OD.

May I suggest that as part of your strategy moving forward, find a great business accountant and build a good relationship with them.

Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900